Greif Bros Corporation (GEF)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 454,500 | 593,900 | 586,900 | 571,300 | 301,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,082,400 | 1,947,900 | 1,761,300 | 1,514,300 | 1,152,200 |
| Return on total capital | 21.83% | 30.49% | 33.32% | 37.73% | 26.19% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $454,500K ÷ ($—K + $2,082,400K)
= 21.83%
Greif Bros Corporation's return on total capital has shown a fluctuating trend over the past five years. Starting at 26.19% in October 2020, it increased significantly to 37.73% by October 2021. However, in the following years, the return on total capital experienced some slight fluctuations, reaching 33.32% in October 2022, then decreasing to 30.49% by October 2023. The most recent data for October 2024 shows a further decline to 21.83%.
Overall, the return on total capital for Greif Bros Corporation indicates the company's effectiveness in generating profits relative to its total capital employed. The varying percentages suggest changes in the company's operational efficiency, profitability, and capital structure over the years. It is important for stakeholders to closely monitor these fluctuations to assess the company's financial performance and make informed decisions.